(Bloomberg) -- Electric snowmobile maker Taiga Motors Corp. filed for creditor protection as the Quebec company seeks to restructure, three months after it halted vehicle production and pared its workforce.
Taiga has been cutting costs and seeking alternatives to fund operations since disclosing in April that a mild winter prompted the Montreal-based company to temporarily postpone output and cut 70 jobs.
“Following a review and after careful consideration of all available alternatives and in consultation with legal and financial advisors, the directors of the company unanimously determined that it was is in its best interests to commence” proceedings under Canada’s Companies’ Creditors Arrangement Act, the company said Wednesday in a statement.
Quebec’s Superior Court has also given the company authorization to pursue a sale of its business and assets, Taiga said.
Taiga had snowmobile sales deals with resort operators in Sweden, Italy and France and distribution agreements for watercraft to South America and United Arab Emirates. The company saw its focus on making only battery-powered products as an advantage over incumbents, including Sea-Doo maker BRP Inc. and Polaris Inc., which were slower to embrace electric models.
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